FADS AND TRENDS ENT 12

2 FADS A product, service, or idea that is extremely popular for a very brief period of time and then becomes unpopular just as quickly. Some examples are:  hula hoops  Rubik’s cube  Cabbage Patch Kids  Pokemon

3 FADS Movies, books, song, television programs Phrases, gestures Novelty products, toys and games are most common Sometimes referred to as a “rage” or a “craze”

4 FADS Because fads are so unpredictable, they can be a high-risk venture. When a fad dies, it dies very quickly, and many businesses have been caught with a large product inventory that no one wants to buy. Entrepreneurs can take advantage of fads for a short time and must learn to recognize them.

5 TRENDS A pattern or direction in the way something is changing; a movement toward a style or idea Have a more long lasting effect on the marketplace Examples include:  In-line skating  Organic food products  Environment industry

6 TRENDS By paying attention to trends, entrepreneurs can take advantage of the opportunity to start and/or maintain a business dealing in that trend Entrepreneurs must learn to tell a fad from a trend—an important skill for an entrepreneur who wants to stay in business

7 TURNING TRENDS INTO OPPORTUNITIES When you spot what appears to be a trend, ask yourself …  What caused this trend to start?  How long will it probably last?  What effects will it probably have?  What product or service might fill the needs generated by this trend?  How can I adapt my existing product to fit with this trend?

8 GLOBAL TRENDS At an international conference in 1999, called the Global Meeting of Generations, the following five major population trends were identified:

9 GLOBAL TRENDS 1. The world population is at an all-time maximum and is continuing to grow. The total populations of developed countries like Canada, will decrease from 20% of the world’s population to 10% by 2100

10 GLOBAL TRENDS 2. More than 50% of people in the world are under 25 years of age. The number of young people who will enter the work force in the next 10 years will be greater than the number of people who made up the entire work force of the developed world in 1990.

11 GLOBAL TRENDS 3. By 2150, the average life expectancy is likely to be 86 for males and 92 for females. For the first time in history, the population over 65 is greater than the population under 15. Seniors are expected to represent 25% of the total population by 2050.

12 GLOBAL TRENDS 4. Families are shrinking in size. Two- income families, city living, crowding, and social pressures are contributing to smaller numbers of children per family in most countries.

13 GLOBAL TRENDS 5. People are moving away from rural communities and into cities and towns. By 2025, about 66% of the world’s population will likely live in towns and cities. This will allow people more varied choices as they pursue work and entrepreneurial opportunities.